> Mirroring the soft Manhattan office & retail market, Brooklyn office space
availability continues to grow. Upgraded buildings now have vacancy rates from 8 to 15%, while unimproved properties can reach 25%. Still, good, larger
spaces (above 4000 sf) are hard to find, but tenants seeking small spaces now have more choices. Building selectivity is crucial given the wide range
of maintenance and service quality in Downtown Brooklyn (DB) and DUMBO.
> After years of little action, leasing activity in the Class A market has resulted in several hundred thousand feet of takings since 2007 at 12 MetroTech, 15 South and One MetroTech. Welcome as this trend
is, it sails into the wind of large blocks of sublet space coming on the market.
> At the new renovations on Court and Joralemon Street, their is still steady demand from attorneys, not-for-profits and government. Creative tenants consider the area now as well.
> It appears that the number of retail tenants in the DB and DUMBO markets no longer exceeds
the supply of spaces. Landlords, due to development and renovation costs, are asking above market rents and holding out for quality, leading to more vacancies.
